Amazon extends same-day delivery to Indy

Amazon operates five distribution centers in Boone, Hendricks and Marion counties, including this one in Whitestown.
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Place an order on Amazon in the morning, and it can now be delivered to your home or business the same day.

The online retail giant announced Wednesday that Central Indiana is now one of 10 metropolitan areas where same-day delivery will be offered — a move that could further ramp up competition with local brick-and-mortar retailers.

Amazon Prime frequent customers will pay a $5.99 delivery fee for same-day orders. Other customers will pay a $9.98 delivery fee for the first item and 99 cents for additional items in the same delivery.

Posting $74.45 billion in revenue in 2013, Amazon is among the fastest-growing retailers in the country. Brick-and-mortar stores have taken notice of the increased market share of the online retailer, lobbying successfully for Indiana to begin requiring Amazon to charge state sales taxes to Hoosier customers this year.

While the change in taxes has better leveled the playing field, traditional stores will have to find ways to compete with the increasingly quick to-your-door delivery by Amazon and other online retailers, said Grant Monahan, president of the Indiana Retail Council.

Strategies could include offering competitive prices and sales, he said, as well as increased promotions and advertising. And shop owners, he said, have the unique opportunity to get to know customers through face-to-face connections.

"I think we've always expected that as online retailers continue to grow and mature that brick-and-mortar retailers are going to have to increasingly step up their game to meet the competition," Monahan said.

The online retail giant has been expanding same-day delivery generally to metropolitan areas with large distribution networks as part of a strategy to more quickly get products to customers. Central Indiana has five Amazon distribution centers in Boone, Hendricks and Marion counties.

"With more than a million eligible items, we aim to offer the largest same-day selection at the lowest price," Greg Greeley, vice president of Amazon Prime, said in a statement.

In the past, Amazon has offered certain limited same-day delivery options on products in metro areas, including Indianapolis.

Amazon has been expanding distribution space the past decade to better meet growing demand from customers.

Baltimore, Dallas, New York, Philadelphia and Washington also are included in Amazon's latest roll out of same-day delivery. The service already was available in Los Angeles, Phoenix, San Francisco and Seattle.